Wema Bank Plc in its unaudited results for the 9 months ended September 30, 2019 grew its Profit before Tax by 55.56%.
According to the Chief Finance Officer of Wema Bank Plc, Tunde Mabawonku the following updates were given:
“We are delighted to announce the Bank’s Q3 2019 results. The performance shows growth in key financial metrics despite the challenging macro-economic environment. Wema Bank recorded YoY growth of 55.56% in profit before tax (PBT) to close the quarter at N4.76billion. This was on the back of growth of 30.95% in Gross earnings from N48.99billion in Q3’2018 to N64.15billion in Q3’2019. The Bank continued to benefit from fees and other non-interest income which closed at N15.79billion in Q3’2019 compared to N10.10 billion in Q3’2018; a growth of 56.34%. Net interest income also recorded a growth of 8.85%, compared to Q3 2018. (Q3 2019; N17.2billion; Q3 2018; N15.8billion).’’
According to the Chief Finance Officer, “The key measure of success for us is growth in customers and customer activity – and we are glad that we are reporting strong double-digit growth here. Customer deposits grew by 23.69% to N456.8billion from N369.3billion in 2018 FY. Net loans grew by 13.76% from N252.2billion (2018 FY) to N286.9 billion (Q3 2019), with a loan to deposit ratio above the regulatory prescribed minimum threshold. NPL numbers remained below 5% while Capital Adequacy of 14.78% is above the regulatory minimum of 10%.
The Bank continues to do well in the Digital space, with ALAT. The Managing Director – Mr. Ademola Adebise also further reiterated this strong performance stating that, “The future for Wema remains growth through innovation and we are proud to be the leading Bank in the Digital Banking space. ALAT has revolutionized customer on-boarding in the industry, now we are taking on payments and commerce. We are creating a digital platform for youths, young entrepreneurs and young professionals. The Bank has also commenced trade partnership with the Bank of Africa group to strengthen its commercial business. We believe that with the focused execution of our 3-year strategy, Wema will remain the Bank to watch out for. The bank remains committed to sustaining this impressive performance and to deliver on the FY 2019 guidance across all key metrics.”
Income Statement
- Gross earnings increased by 30.95% (Y-o-Y) to N15billion in Q3’2019 from N48.99billion in Q3 2018
- Reported Profit before Tax (PBT) and Profit After Tax (PAT) of N76billion and N4.12billion, an increase of 55.56% and 56.06% respectively in Q3’2019 (Q3 2018; N3.06billion PBT, N2.64billion PAT)
- Net-Interest Income grew to N2billion from N15.8bilion in Q3 2018; growth of 8.85%
- A growth of 56.34% in Non-Interest Income to N79billion from N10.10billion in Q3 2018
Statement of Financial Position
- Deposit Liabilities up by 23.69% to N8billion from N369.3billion in 2018 FY
- Net loans grew by 13.76% from N2billion (2018 FY) to N286.9 billion (Q3 2019)
- Total Asset increased by 25.70% to N7billion in Q3 2019 from N477.9billion in 2018 FY
Key Ratios
- ROAE of 11.93% in Q3 2019 (Q3 2018; 7.83%)
- ROAA of 1.07% in Q3 2019 (Q3 2018; 0.85%)
- 99% NPL ratio (Q3 2018; 4.28%)
- CAR is 14.78% (Q3 2018; 13.33%)
Operational Achievements
- Fitch, GCR and Agusto re-affirm Wema’s National Long-term rating at (BBB-)
- We have upgraded our core banking application and infrastructure to enhance customer service excellence across all banking channels
- Our Agent banking network has increased to over 2,700, thus deepening our retail franchise and banking penetration.